August 11, 2020    中文(简体)   
One Economist Thinks Canada’s Housing Market Could Weaken Next Year
Although Canada's housing market appears to be stabilizing,  one economist doesn’t think the country should relax just yet.

David Doyle, a Canadian market strategist and economist at Macquarie Group, says the reset of five-year fixed mortgage rates next year could pose potential risks to the economy, BNN Bloomberg reports

“Where I get more concerned about housing actually is, as we move into 2020, is that the rate reset of five-year fixed rate mortgage holders moves higher again, 75 to 80 basis points,” Doyle told Bloomberg. “So that for me is a risk for 2020, that potentially, there's another bout of weakness coming for housing across the country."

The Bank of Canada is already thinking of ways to make the economy safer. Earlier this month, BoC Governor Stephen Poloz revealed he wanted to give Canadians more flexible mortgage options. such as longer fixed-rate mortgages, in order to lower financial risk.

Poloz argued that longer terms would make homeownership more affordable because consumers would be renewing at higher rates less often.

Doyle’s concerns about housing weakness come just after chief economist Gregory Klump, of the Canadian Real Estate Association, noted that “sales activity is stabilizing among Canada's five most active urban housing markets."

Klump’s comments were in regards to a CREA report that home sales in April had their first year-over-year increase since December 2017. The data suggested the Canadian market was in recovery, following February’s numbers, which hit an all-time low since 2012.

* Listing Units and Listing Volume sold by Kevin Lin from Jan 1, 2015 to Dec 31, 2019 (RE Stats Inc.)
Sold For The Highest Price On The Street: TREB MLS as of sold date.
"Not Intended To Solicit Current Agency Relationships."

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license. The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.

Harbour KEVIN LIN Homes, Brokerage (Owned & Operated by KEVIN LIN Realty Inc.), Each Office Independently Owned and Operated